Transliteration is the process of converting text from one writing system into another while preserving its pronunciation. Unlike translation, which conveys meaning, transliteration focuses on how a word or name sounds, ensuring it can be accurately represented across different languages and scripts. For example, the Russian name “Алексей” is transliterated into English as “Alexey.”

According to a study by the U.S. Treasury Department, false negatives due to poor name transliteration significantly undermine the effectiveness of AML compliance programs, leading to systemic vulnerabilities. In the context of name screening, transliteration is essential for organizations handling anti-money laundering (AML) compliance, know your customer (KYC) processes, or customer due diligence. Here is why it matters:

1. Most Sanctions and Negative Media Lists are in English

A significant majority of sanctions lists, politically exposed persons (PEP) lists, and adverse media databases are maintained in English. Transliteration is essential for screening non-English names against these lists, ensuring matches are not missed due to script differences.

2. Improving Detection Accuracy

Transliteration helps recognize phonetic variations and alternate spellings of names. For example, the Arabic name “يوسف” could be transliterated as “Yusuf,” “Yousef,” or “Yosuf,” depending on the system or region. Transliteration algorithms account for these variations, reducing the risk of missed matches.

3. Bridging Language Barriers

Names written in scripts such as Arabic, Cyrillic, or Chinese often need to be converted into Latin characters for processing. Transliteration ensures effective name screening across different languages and scripts.

4. Enhancing Compliance

Regulatory bodies often require organizations to screen names against watchlists or databases that may not support native scripts. Transliteration ensures compliance by standardizing names for consistent checks.

5. Reducing False Positives

Inconsistent spellings or manual entry errors can lead to false positives, wasting time and resources. Transliteration standardizes name formats, helping reduce errors and making the screening process more efficient.

6. Supporting Global Operations

For businesses operating in multiple regions, transliteration fosters a seamless and culturally sensitive onboarding process, enhancing trust and the customer experience.

FinchSCAN incorporates AI-powered transliteration technology in to the portal, allowing users to screen names accurately across various scripts and identify potential matches on sanctions lists, PEP databases and adverse media, regardless of the original language. Transliteration is not just a linguistic tool, it is a critical component of efficient name screening systems, enhances the AML compliance process and reduces the risk of missed matches.

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